Divorce Financial Planning : Mistakes A WOMAN should avoid in a Divorce.

THE TOP TEN MISTAKES A WOMAN SHOULD AVOID IN A DIVORCE
WHEN IT COMES TO DIVORCE FINANCIAL PLANNING

1.	Understanding that a matrimonial divorce settlement is NOT an exact science. If a financial divorce settlement was a straight mathematical equation, we wouldn't need courts and lawyers to resolve matters. Courts are usually required, under Family Law legislation, to take into account a range of factors in deciding who gets what.
2.	Settling for a 50% split of the matrimonial property WITHOUT taking into account matters such as significant disparities between what your husband earns and your own weekly/monthly income and any restrictions your age or health might have on your capacity to earn income.
3.	Letting your spouse retain the matrimonial home IF you have the ability to buy him out. Real estate property has a habit of increasing in value without you having to do anything. If you pass this up and he pays you out then the problem often is that you don't have enough money to purchase a property of your own. Deposits, stamp duty, legal fees etc. can put buying another home out of your reach. You're left paying out dead money in rent.
4.	Keeping the matrimonial home when you really CAN'T afford to financially. If buying out your husband's share in the house is going to involve you taking out a big loan, you need to factor in the monthly loan repayments PLUS outgoings such as rates, building insurance, public liability insurance and general maintenance costs. Only then will you know whether or not you can actually afford to keep the house.
5.	Failing to take other matters such as alimony and child support into consideration BEFORE agreeing on a division of the matrimonial property.
6.	Not appreciating that it is the current value of property that is taken into account - not replacement value. This means that if the family car is worth $10,000, it is often better to keep it, as you may have to spend twice this just to replace it. If you have the kids then they have to get to school, football training etc. somehow.
7.	Failing to realise that the marital furniture and effects are usually secondhand furniture and therefore not worth a lot of money. For example, the fridge that you paid $1,000 for new may now only worth a few hundred dollars. Keeing the bulk of the furniture (if it is in good condition) will avoid you having to pay a lot more money to replace it.
8.	Accepting the inflated financial value your husband is likely to put on any property that you want to keep and the low value he's likely to put on any property he actually wants to keep.
9.	Arguing over the little things. By this we mean, fighting for items of little financial worth. It's pointless paying hundreds of dollars in legal fees disputing who is going to get the $50 stamp collection.
10.	Overlooking other assets such as boats, trailers, machinery, pensions, retirement funds, stocks, shares and life insurance as matrimonial property and/or financial resources.
11.	Failing to make your husband take out life insurance (with you as the owner and beneficiary) to guarantee his payments of any child support or alimony.
12.	Believing that if you go "soft" on your property settlement entitlements, your husband will be easier to deal with as regards the children.
13.	Seeking divorce financial planning advice from a lawyer instead of a financial planner.
14.	Reaching an informal agreement that is not legally binding - even if it's written down and both parties have signed it.
15.	Giving in to your husband because that's what you've always done.

Divorce is about looking after your future. Many husbands use what I refer to as the "Bluff Act" to intimidate their spouse. If you don't want to fall victim to this, get a copy of my book "How To Win When Facing Divorce" TODAY. It's an instant downloadable ebook that's you really shouldn't be without.

Barry Roche is the author of numerous divorce articles and ebooks including, “How To “Win” When Facing Divorce”. He is a former Family Law Specialist who wrote this book specifically for women. The book is available for purchase at http://www.divorceandwomen.com/help.html.

(This article may be reproduced provided it is unedited, the copyright is acknowledged and the information in the resource box and links are published with it.)